[RTC List] CPUC creates new fund for broadband

Sean McLaughlin sean at accesshumboldt.net
Sun Dec 23 13:45:40 PST 2007


Check out the rationale for this new $100 Million fund created by the 
California Public Utilities Commission!

Now we just need to link the Redwood Coast Connect efforts with this new 
pot of money...

      FOR IMMEDIATE RELEASE Docket #: R.06-06-028 <javascript:void(0)>

      Media Contact: Terrie Prosper, 415.703.1366 <javascript:void(0)>,
      _news at cpuc.ca.gov <mailto:news at cpuc.ca.gov>_

*CPUC PROMOTES BROADBAND SERVICE IN UNSERVED AREAS OF CALIFORNIA TO 
BRIDGE DIGITAL DIVIDE*

      SAN FRANCISCO, December 20, 2007 - The California Public Utilities
      Commission (CPUC) today allocated $100 million over two years to
      the new California Advanced Services Fund (CASF), which will
      provide incentives to companies to bring broadband service to
      unserved and underserved areas of California, many of which are
      rural, remote, or socio-economically disadvantaged communities.

      "Today's decision signals that this state is not content to sit
      around waiting for federal action to bring broadband to every part
      of our state," said CPUC President Michael R. Peevey. "We
      encourage every broadband provider in California to be a part of
      the solution for ending the digital divide in our state and
      participate in the CASF process."

      "The CASF will focus on the unserved and underserved regions of
      California, enabling us to reach out to the state's low income
      rural communities," said CPUC Commissioner Dian M. Grueneich. "By
      leveraging the program with 60 percent or more matching funds, we
      will be able to provide more of these communities with 21^st
      century broadband technology as well as 21^st century opportunities."

      Added CPUC Commissioner John Bohn, "This decision represents a
      critical element in the modernization of California's
      infrastructure by creating the capacity in the unserved sector to
      participate in the new California economy."

      "Without a broadband pipe to provide access to the Internet, these
      unserved communities will become `digital have-nots'," said CPUC
      Commissioner Rachelle Chong, the assigned Commissioner of the
      proceeding. "Policymakers and corporate leaders across the nation
      have been talking about the importance of deploying broadband
      infrastructure for years, yet this critical infrastructure is not
      available throughout the state. It is time to stop talking and
      finish the job."

      Among the findings of today's decision:

            · Broadband infrastructure is critical to the economic
            health and welfare of the state and its citizens. Ubiquitous
            deployment of broadband holds tremendous opportunities for
            consumers, technology providers, and content providers, and
            is important to the continued health and economic
            development in California - home to the leading centers for
            entertainment and high technology.

            · California Advanced Services Fund recipients will be
            subject to specific audit or related verification
            requirements to verify that funds are spent in accordance
            with CPUC requirements.

      The California Advanced Services Fund will be a new universal
      service program, beginning on January 1, 2008. It is limited to
      $100 million over a two year period.

      Workshops will be held in February 2008 at the CPUC to determine
      the criteria and application process for assessing applications
      for unserved and underserved areas of California. After it
      approves the final criteria in a resolution, the CPUC will focus
      first on funding for areas where no facilities-based provider
      offers broadband service with the ultimate goal of making
      available a level of broadband service that provides a reasonable
      balance of technology, engineering, and cost. A 3 megabits per
      second (Mbps) download and a 1 Mbps upload speed is adopted as the
      benchmark for evaluating applications. To further the CPUC's
      universal service goals, approved providers will also provide
      voice service as one of the applications available over the
      broadband service.

      A deadline of June 2, 2008 is set for submission of CASF funding
      requests. The CPUC will review, rank, and select qualifying
      projects for CASF funding based on how well they satisfy the final
      criteria. Such consideration will be done in a technology neutral
      fashion. The CPUC will require applicants to provide a minimum of
      60 percent matching funds as a prerequisite for consideration of
      their applications. CASF funds are for authorized capital projects
      on approved broadband deployment projects and may not be used for
      general operating and maintenance expenses.

      Funding for the CASF will be collected using a surcharge on
      telephone customer bills. The CASF surcharge is set at 0.25
      percent, and will be collected beginning with the January 1, 2008
      billing cycle for two years. It is estimated the new surcharge
      will be a nickel a month for an average phone user. CASF funding
      will not increase customers' total surcharges, however, because
      the CASF surcharge will be offset by an equal reduction in the
      California High Cost Fund-B surcharge to reflect the full effect
      of changes to that program approved by the CPUC in August 2007.
      The CASF surcharge may appear as a separate line item on a
      customer's bill or because it will be in place for a limited
      period it may be combined with the California High Cost Fund-B
      surcharge, if the line item is renamed to reflect both funds.

      The CPUC's action runs parallel with efforts by the California
      Emerging Technology Fund (CETF), a separate, nonprofit
      organization created by the CPUC to bridge the digital divide with
      a grant of $60 million from AT&T and Verizon. Building a broadband
      pipe to these unserved and underserved communities is only the
      first step to digital literacy for these communities. In early
      2008, the CETF is expected to make grants to California nonprofit
      organizations that will address not only access issues, but also
      affordability, application, and accessibility issues relating to
      broadband adoption in three target communities: rural and remote,
      low income and disadvantaged, and people with disabilities.

      For more information on communications issues, please visit
      _www.CalPhoneInfo.com <http://www.CalPhoneInfo.com>_.

      For more information on the CPUC, please visit _www.cpuc.ca.gov
      <http://www.cpuc.ca.gov>_.

      ###


** CPUC Creates the California Advanced Services Fund (CASF) -** 
December 20, 2007, the CPUC voted 5-0 to create a $100 million 
California Advanced Services Fund (CASF) to support build-out of 
broadband infrastructure. This will be a two year program funded by a 
new surcharge beginning January 1, 2008. ILECs, Wireless, VoIP, CLECs 
and Cable companies qualify for this new program if they have a CPCN and 
can meet the voice and emergency back-up requirements.

Applications must be for infrastructure that will support speed at a 
minimum of 3 meg download and 1 meg up load.

This program will be funded initially at $50 million per year. All 
telecommunications carriers are required to charge all end users the 
CASF surcharge, as set by the Commission, except for ULTS billings, 
coin-sent paid calling, debit card messages, one-'way radio paging, 
usage charges to COPTs, customers receiving services under existing 
contracts, and directory advertising.

// There is a very short fuse on implementation. // The California 
Advanced Services Fund surcharge is set at 0.25% (in addition to the 
.25% for CHCF-B) and will be collected from end users beginning with the 
billing cycle that begins on January 1, 2008. All telecommunications 
carriers must each establish a memorandum account tracking system for 
recording collections of the 0.25% surcharge revenues applicable to the 
CASF beginning January 1, 2008. The CASF memorandum account shall accrue 
monthly interest on the accumulated balance at the applicable short-term 
commercial paper rate.

 //Press Release/  // 
<http://docs.cpuc.ca.gov/PUBLISHED/NEWS_RELEASE/76879.htm> // 
http://docs.cpuc.ca.gov/PUBLISHED/NEWS_RELEASE/76879.htm
 ////Decision PDF - 
http://www.calcomwebsite.com/reports07/CASF-FinalDecision.pdf
 Decision HTML - http://docs.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/76947.htm
//



-- 
Sean McLaughlin
Executive Director
Access Humboldt
P.O. Box 157, Eureka, CA 95502
tel: 707-476-1798
dir: 707-476-2873
fax: 707-476-1702
cel: 707-616-2381
e: sean at accesshumboldt.net
web:  accesshumboldt.net

"Everyone has the right to freedom of opinion and expression; 
this right includes freedom to hold opinions without 
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- Universal Declaration of Human Rights, Article 19 (UN, 1948)

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